According to recent statistics, the global CBD market is projected to reach USD 2.207 billion by 2026, representing an impressive compounded annual growth rate (CAGR) of 125.58%. Numerous factors have contributed immensely to the rapid growth of the CBD industry. Most notable is the fact that cannabidiol is widely marketed for its many healing benefits.
As subsequent studies continue to uncover even more health benefits of CBD, various authorities worldwide are also responding by decriminalizing CBD-based products. Cannabidiol’s increasing acceptance has seen many investors jostling to tap into the lucrative CBD industry. But as you might expect, there are certain things to know before setting up a CBD business. And that’s especially true for online CBD retail outlets.
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CBD Has Numerous Health Benefits
The first thing to know before establishing an online CBD business is that cannabidiol has numerous medicinal uses. CBD is mostly marketed for its analgesic properties. According to medical marijuana doctors, supplementing CBD products from reputable suppliers like Sunday Scaries CBD might go a long way in relieving both nociceptive and neuropathic pain.
Anxiety is another significant condition that CBD can treat. Like most antidepressants, CBD exerts its anxiolytic effects by increasing the body’s sensitivity to feel-good neurotransmitters like serotonin.
Besides pain and anxiety, you can also use CBD to aid sleep. The compound is a renowned sedative that boosts sleep by shortening sleep latency. And once you fall asleep, CBD can increase sleep duration by reducing the time spent in rapid eye movement (REM) sleep. REM sleep is the sleep phase during which people tend to dream intensely.
Other medical conditions CBD can treat include inflammatory diseases, seizures, nausea, metabolic disorders, and skin problems.
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CBD Consumers Differ
CBD consumers mainly comprise medical marijuana users. However, some of your prospective clients may be recreational users. As you shall find, CBD can be used either medically or recreationally. It all depends on the levels of the psychoactive chemical tetrahydrocannabinol (THC) in your products.
Age, gender, and income are other crucial factors to consider when studying your audience. Younger people make up the most significant proportion of recreational users. In contrast, most adults and seniors prefer medical marijuana. In terms of gender, more men than women consume related products. Also, don’t forget that pets can also consume CBD. And CBD-infused pet treats are pretty different from CBD supplements made for human consumption.
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There Are Various Ways to Enter the CBD Industry
Many aspiring CBD investors usually think along the lines of starting a CBD retail outlet. Becoming a CBD supplier is indeed the most common way to enter the CBD industry. However, it’s not the only way to tap into this lucrative market. The following are other ways you can enter the CBD industry;
- Becoming a cultivator
- Setting up a CBD processing plant
- Offering auxiliary services to CBD traders, such as packaging and distribution services
- Offering CBD consultancy services
- Investing in CBD stocks
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Major Search Engines and Social Media Platforms Are Still Not CBD Friendly
This is probably the most negative piece of news any aspiring online CBD trader would want to hear. Although cannabidiol is gaining widespread global acceptance, many major search engines like Google and social networking sites
However, the situation isn’t as grim as it sounds. There are numerous weed-friendly social media platforms where you can freely market your CBD products. Examples include Leafly, Weedable, WeedLife, Grow Diaries, MJLink, etc.
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There Are Several Delivery Methods
CBD products fall into five major categories, depending on the intended delivery method. They include;
- Inhalable like CBD-based e-juices, wax concentrates, and dry herbs
- Smokeable like dried hemp buds
- Edibles like CBD-infused gummies, candies, baked goods, and chocolate products
- Topicals like CBD-enriched bath bombs and ointments
- Oral tinctures
If you’re venturing into the industry for the first time, it will help specialize in one line of product. You can then incorporate more products as time goes by.
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CBD’s Legality Varies by Country or State
Despite the growing body of studies citing cannabidiol for its immense therapeutic benefits, it’s important to note that CBD is not legal worldwide. In the United States, CBD-based products are legal in all fifty states, provided that those products contain no more than 0.3% of THC.
So, it’s essential to understand your local CBD laws before setting up a CBD venture online or offline.
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Packaging Rules Vary Too
Proper packaging is crucial in raising awareness of your brand. But when it comes to CBD and other products, the packaging is not just a matter of brand awareness. Even in jurisdictions where cannabidiol is legal, regulators may still impose additional rules for packaging CBD-based products.
Besides declaring the strength of CBD and THC in your products, you may also be required to add notes on dosage and side effects. Plus, you may be required to state how the CBD in your products was sourced and whether the ingredients have been subjected to third-party lab testing.
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CBD is unquestionably the most lucrative sector of the considered industries. But like any industry, jumping into the CBD market headlong will only have you losing your investment. We hope you’ll keep the above points in mind before setting up a business venture.
